Section 2 (MPRAA) – Registration

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Part II

Registration



2      Registration

(1)     A person qualifies for registration in terms of this Act if that person—

(a)     holds a prospecting right, retention permit, exploration right, mining right, mining permit or production right granted pursuant to the Mineral and Petroleum Resources Development Act or a lease or sublease mentioned in section 11 of the Mineral and Petroleum Resources Development Act in respect of such a right;

[Paragraph (a) amended by section 34(1)(a) of Act 8 of 2010 deemed effective on 1 November, 2009]

(b)     wins or recovers a mineral resource extracted from within the Republic; or

[Paragraph (b) substituted by section 34(1)(b) of Act 8 of 2010 deemed effective on 1 November, 2009]

(c)     elects to register for the purposes of this Act.

[Paragraph (c) added by section 34(1)(c) of Act 8 of 2010 deemed effective on 1 November, 2009]

(2)      A person that qualifies for registration as mentioned in subsection (1)—

(a)     on 1 November 2009—

i)       may apply to register with the Commissioner on or after 1 November 2009; and

(ii)      must apply to register with the Commissioner by 28 February, 2010; or

[Subparagraph (ii) substituted by section 34(1)(d) of Act 8 of 2010 deemed effective on 1 November, 2009]

(b)     after 1 November 2009 must apply to register with the Commissioner within 60 days after the day on which that person qualifies for registration.

[Subsection (2) substituted by section 62 of Act 18 of 2009]

(3)     The Commissioner must register a person that qualifies for registration and that registration takes effect from the beginning of the year of assessment during which the person qualifies for registration.

Section 19 (MPRAA) – Reporting, secrecy and disclosure

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19             Reporting, secrecy and disclosure

(1)     Despite Chapter 6 of the Tax Administration Act, the Commissioner must annually submit to the Minister of Finance a report, in the form and manner that the Minister may prescribe, within six months from the date that the Commissioner received the report from each extractor, advising the Minister of—

(a)     the volume of mineral resources transferred by each extractor;

[Paragraph (a) substituted by section 29(1)(b) of Act 39 of 2013 effective on 1 January, 2014 and applicable in respect of years of assessment commencing on or after that date]

(b)     the gross sales of each extractor as mentioned in section 6(1) and (2) of the Royalty Act;

[Paragraph (b) amended by section 38(1)(a) of Act 8 of 2010 and substituted by section 29(1)(b) of Act 39 of 2013 effective on 1 January, 2014 and applicable in respect of years of assessment commencing on or after that date]

(bA)   the adjusted gross sales of the extractor if that adjustment is required in terms of section 6(5) of the Royalty Act;

[Paragraph (bA) inserted by section 29(1)(c) of Act 39 of 2013 effective on 1 January, 2014 and applicable in respect of years of assessment commencing on or after that date]

(c)     the percentage determined in terms of section 4(1), (1A) and (2) of the Royalty Act;

[Paragraph (c) amended by section 24 of Act 18 of 2023]

(d)     the methodology employed to adjust the amount allowed to be deducted in respect of the use of assets or expenditure incurred in terms of section 5 of the Mineral and Petroleum Resources Royalty Act;

[Paragraph (d) added by section 38(1)(a) of Act 8 of 2010 deemed effective on 1 March, 2010]

(e)     the methodology employed to adjust the amount of gross sales determined in terms of section 6 of the Mineral and Petroleum Resources Royalty Act;

[Paragraph (e) added by section 38(1)(a) of Act 8 of 2010 deemed effective on 1 March, 2010]

(f)      the allocation of the amount in respect of assets used or expenditure incurred contemplated in section 5 of the Royalty Act per mineral resource;

[Paragraph (f) added by section 38(1)(a) of Act 8 of 2010 deemed effective on 1 March, 2010]

(g)     the amounts of the royalty imposed in terms of section 2 of the Royalty Act in respect of refined minerals and unrefined minerals, respectively;

[Paragraph (g) added by section 33(1)(b) of Act 21 of 2012 effective on 1 January, 2013]

(h)     the amount of earnings before interest and taxes determined in accordance with section 5(1) and (2) of the Royalty Act, respectively;

[Paragraph (h) added by section 33(1)(b) of Act 21 of 2012 effective on 1 January, 2013]

(i)      the amount of the royalty that would have been imposed on an extractor in respect of mineral resources transferred had that extractor not been exempt from the royalty in terms of section 7(1)(a) of the Royalty Act;

[Paragraph (i) added by section 33(1)(b) of Act 21 of 2012 effective on 1 January, 2013]

(j)      the amount of the royalty that would have been imposed on an extractor in respect of mineral resources transferred had that extractor not been exempt from the royalty in terms of section 7(1)(b) of the Royalty Act; and

[Paragraph ( j) added by section 33(1)(b) of Act 21 of 2012 effective on 1 January, 2013]

(k)     the amount of the royalty that would have been imposed on an extractor had that extractor not been exempt from the royalty in terms of section 8 of the Royalty Act.

[Subsection (1) amended by section 33(1)(a) of Act 21 of 2012, by section 29(1)(a) of Act 39 of 2013 and by section 46(1)(b) of Act 16 of 2016 effective on 1 January, 2017 and applicable in respect of years of assessment commencing on or after that date. Paragraph (k) added by section 33(1)(b) of Act 21 of 2012 effective on 1 January, 2013]

(2)     The Minister of Finance and every person employed or engaged by him or her with regard to all matters that may come to his or her knowledge by virtue of subsection (1) are subject to section 67(4) of the Tax Administration Act.

[Subsection (2) substituted by section 29(1)(d) of Act 39 of 2013 and by section 46(1)(c) of Act 16 of 2016 effective on 1 January, 2017 and applicable in respect of years of assessment commencing on or after that date]

(3)     . . . . . .

[Subsection (3) deleted section 46(1)(d) of Act 16 of 2016 effective on 1 January, 2017 and applicable in respect of years of assessment commencing on or after that date]

(4)     . . . . . .

[Subsection (4) deleted section 46(1)(d) of Act 16 of 2016 effective on 1 January, 2017 and applicable in respect of years of assessment commencing on or after that date]

(5)     . . . . . .

[Subsection (5) deleted section 46(1)(d) of Act 16 of 2016 effective on 1 January, 2017 and applicable in respect of years of assessment commencing on or after that date]

(6)     . . . . . .

[Subsection (6) deleted section 46(1)(d) of Act 16 of 2016 effective on 1 January, 2017 and applicable in respect of years of assessment commencing on or after that date]

(7)     The provisions of this section must not be construed as preventing—

(a)    . . . . . .

[Paragraph (a) deleted by section 29(1)(e) of Act 39 of 2013 effective on 1 January, 2014 and applicable in respect of years of assessment commencing on or after that date]

(b)     the Commissioner from disclosing to the Director-General of the Department of Mineral Resources; and

(c)     the Minister of Finance and the Commissioner from disclosing to the chief executive officer of the agency designated by the Minister responsible for Mineral Resources in terms of section 70 of the Mineral and Petroleum Resources Development Act, 2002 (Act 20 of 2002),

any information submitted under subsection (1).

[Subsection (7) substituted by section 38(1)(b) of Act 8 of 2010 and amended by section 46(1)(e) of Act 16 of 2016 effective on 1 January, 2017 and applicable in respect of years of assessment commencing on or after that date]

(8)     The provisions of subsection (2) apply to the persons referred to in subsection (7) and any person engaged or employed by them that has access to the information.

[Section 19 amended by section 46(1)(a) of Act 16 of 2016 effective on 1 January, 2017 and applicable in respect of years of assessment commencing on or after that date. Subsection (8) added by section 46(1)(f) of Act 16 of 2016 effective on 1 January, 2017 and applicable in respect of years of assessment commencing on or after that date]

Section 17 (MPRAA) – Administration of Act

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Part VI
Miscellaneous


17     Administration of Act


(1)     The Commissioner is responsible for administering this Act and the Royalty Act, in accordance with the provisions of the Tax Administration Act.

[Subsection (1) substituted by section 271 read with paragraph 190(a) of Act 28 of 2011]

(2)     Administrative requirements and procedures for purposes of the performance of any duty, power or obligation or the exercise of any right in terms of this Act are, to the extent not regulated in this Act, regulated by the Tax Administration Act.

[Subsection (2) substituted by section 271 read with paragraph 190(b) of Act 28 of 2011]


18     . . . . . .

[Section 18 repealed by section 271 read with paragraph 191 of Sch. 1 of Act 28 of 2011]

Section 16 (MPRAA) – Interest

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16     Interest

(1)     The Commissioner must pay interest in accordance with the provisions contained in Chapter 12 of the Tax Administration Act in respect of overpayment of an amount paid to the extent that that amount exceeds—

(a)     in the case where that amount was paid in respect of a notice of assessment, the amount so assessed; or

(b)     in any other case, the amount of royalty properly chargeable under the Royalty Act.

[Subsection (1) substituted by section 44(1)(a) of Act 16 of 2016 effective on 1 January, 2017 and applicable in respect of years of assessment commencing on or after that date]

(2)     A registered person must pay interest in accordance with the provisions contained in Chapter 12 of the Tax Administration Act—

(a)     in respect of so much of the amount that must be paid in terms of section 5(1) or (2), 5A or 6 as is not paid on the day by which that payment was required to be made under this Act; and

(b)     . . . . . .

(c)     in respect of so much of the amount that must be paid under an additional assessment issued by the Commissioner, other than an additional assessment under section 5A, as is not paid on the day by which that payment was required to be made.

[Subsection (2) substituted by section 44(1)(b) of Act 16 of 2016 effective on 1 January, 2017 and applicable in respect of years of assessment commencing on or after that date]

(3)      . . . . . .

[Subsection (3) deleted by section 44(1)(c) of Act 16 of 2016 effective on 1 January, 2017 and applicable in respect of years of assessment commencing on or after that date]

Section 14 (MPRAA) – Penalty for underpayment as a result of underestimation of royalty payable

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Part V
Penalties and interest

[Part V, heading substituted by section 41(1) of Act 16 of 2016 effective on 1 January, 2017 and applicable in respect of years of assessment commencing on or after that date

13    . . . . . .

[Section 13 repealed by section 271 read with paragraph 189 of Schedule 1 of Act 28 of 2011]

14     Penalty for underpayment as a result of underestimation of royalty payable

(1)     If in respect of a year of assessment the royalty payable exceeds the amounts paid under sections 5(1) and (2) and 5A and that excess is greater than 20 per cent of the royalty payable, the Commissioner must impose a penalty, which is regarded as a percentage based penalty imposed under Chapter 15 of the Tax Administration Act, that may not exceed 20 per cent of that excess.

[Subsection (1) substituted by section 37(1) of Act 8 of 2010, by section 32(a) of Act 23 of 2015 and by section 42(1)(b) of Act 16 of 2016 effective on 1 January, 2017 and applicable in respect of years of assessment commencing on or after that date]

(2)     A penalty imposed as mentioned in subsection (1) is payable within 30 days from the date on which it was imposed.

(3)     Where the Commissioner is satisfied that the estimates of the royalty payable and the amounts paid as mentioned in section 5 were seriously calculated with due regard to the factors having a bearing thereon and were not deliberately or negligently understated, or if the Commissioner is partly so satisfied, the Commissioner may remit the penalty mentioned in subsection (1) or a part thereof.

[Subsection (3) added by section 32(b) of Act 23 of 2015]

(4)     If—

(a)     a registered person is regarded under section 5A (4) as having submitted an estimate of an amount of nil royalty payable in respect of a year of assessment due to a failure to submit an estimate before the end of a period of four months after the last day of that year of assessment; and

(b)     the Commissioner is satisfied that the failure was not due to an intent to evade or postpone the payment of the royalty,

the Commissioner may remit the whole or any part of a penalty imposed under subsection (1).

[Subsection (4) added by section 42(1)(c) of Act 16 of 2016 effective on 1 January, 2017 and applicable in respect of years of assessment commencing on or after that date]

[Section 14 amended by section 42(1)(a) of Act 16 of 2016 effective on 1 January, 2017 and applicable in respect of years of assessment commencing on or after that date]

15     . . . . . .

[Section 15 repealed by section 43(1) of Act 16 of 2016 effective on 1 January, 2017 and applicable in respect of years of assessment commencing on or after that date]

Section 9 (MPRA) – Rollover relief for disposals involving going concerns

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9   Rollover relief for disposals involving going concerns

 

(1)     For purposes of this Act a disposal of a mineral resource by an extractor that forms part of the disposal of a going concern, or of a part of a going concern which is capable of separate operation, by that extractor to any other extractor is deemed not to be a disposal.

 

(1A)   For purposes of this Act a disposal of a mineral resource by an extractor to any other extractor is deemed not to be a disposal, if—

 

(a)     the mineral resource is disposed of to another extractor in terms of—

 

(i)      an asset-for-share transaction mentioned in section 42 of the Income Tax Act;

 

(ii)     an amalgamation transaction mentioned in section 44 of the Income Tax Act;

 

(iii)    an intra-group transaction mentioned in section 45 of the Income Tax Act;

 

(iv)    a liquidation distribution mentioned in section 47 of the Income Tax Act; or

 

(v)     any transaction which would have constituted a transaction or distribution mentioned in subparagraphs (i) to (iv) regardless of whether that extractor acquired that mineral resource as a capital asset or as trading stock; and

 

(b)     the extractor to whom the mineral resource is disposed of, immediately after a transaction contemplated in paragraph (a)(i), (ii), (iii), (iv) or (v), qualifies for registration in terms of section 2(1)(a) of the Administration Act.

[Subsection (1A) inserted by section 100(1) of Act 17 of 2009 effective on 1 March, 2010 and applicable in respect of a mineral resource transferred on or after that date]

 

(2)     For purposes of this Act an extractor that acquires a mineral resource in terms of a disposal mentioned in subsection (1) is deemed to be the extractor that won or recovered the mineral resource.

Section 8A (MPRA) – Rollover relief for transfers between extractors

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8A     Rollover relief for transfers between extractors

 

(1)     An extractor that transfers a mineral resource to another extractor is exempt from the royalty in respect of the transfer of that mineral resource if—

 

(a)     the mineral resource is transferred between extractors that are registered in terms of the Administration Act; and;

 

(b)     both extractors agree in writing that this section applies to that transfer.

 

(2)     An extractor to whom a mineral resource is transferred under subsection (1) must be treated as the person that wins or recovers the mineral resource.

 

(3)     This section does not apply to a transfer of a mineral resource from an extractor that is registered in terms of section 2(1)(c) of the Administration Act.

[Section 8A inserted by section 135(1) of Act 7 of 2010 and amended by section 150(1) of Act 24 of 2011 deemed effective on 1 March, 2010 and applies in respect of a mineral resource transferred on or after that date]

Section 8 (MPRA) – Exemption for sampling

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8   Exemption for sampling


An extractor is exempt from the royalty imposed in respect of mineral resources won or recovered by the extractor for purposes of testing, identification, analysis and sampling mentioned in section 20 of the Mineral and Petroleum Resources Development Act pursuant to a prospecting right or an exploration right as defined in section 1 of that Act if the gross sales in respect of those mineral resources do not exceed R100 000 during a year of assessment.

[Section 8 substituted by section 97 of Act 23 of 2018]

Section 7 (MPRA) – Small business exemption

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7   Small business exemption


(1)     An extractor is exempt from the royalty in respect of a year of assessment if—


(a)     gross sales of that extractor in respect of all mineral resources transferred does not exceed R10 million during that year;


(b)     the royalty in respect of all mineral resources transferred that would be imposed on the extractor for that year does not exceed R100 000; and

[Paragraph (b) amended by section 186(1)(a) of Act 31 of 2013 effective on 1 March, 2014 and applicable in respect of a mineral resource transferred on or after that date]

(c)     the extractor is a resident as defined in section 1 of the Income Tax Act throughout that year.

[Paragraph (c) amended by section 186(1)(b) of Act 31 of 2013 effective on 1 March, 2014 and applicable in respect of a mineral resource transferred on or after that date]

(d)      . . . . . .

[Paragraph (d) deleted by section 186(1)(c) of Act 31 of 2013 effective on 1 March, 2014 and applicable in respect of a mineral resource transferred on or after that date]

(2)     An extractor is not exempt from the royalty as mentioned in subsection (1) if—


(a)     the extractor at any time during that year holds the right to participate (directly or indirectly) in more than 50 per cent of the share capital, share premium, current or accumulated profits or reserves of, or is entitled to exercise more than 50 per cent of the voting rights in, any other extractor;


(b)     any other extractor at any time during that year holds the right to participate (directly or indirectly) in more than 50 per cent of the current or accumulated profits of the extractor;


(c)     any other person at any time during that year holds the right to participate (directly or indirectly) in more than 50 per cent of the profits of the extractor and more than 50 per cent of the current or accumulated profits of any other extractor; or


(d)     the extractor is a registered person mentioned in section 4 of the Administration Act.